USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 1.0936; (P) 1.1011; (R1) 1.1069; More

USD/CHF continues to treat today after once again failing to sustain above 1.0999/1028 resistance zone. With an intraday top in place, outlook remains neutral for the moment. On the upside, sustained trading above 1.0999/1028 resistance zone is needed to confirm recent rally has resumed for next key medium term resistance at 1.1596. On the downside, break of 1.0842 support will indicate that rise from 1.0010 has topped out with bearish divergence condition in 4 hours MACD and RSI and bring deeper correction before staging another rise.

In the bigger picture, the case that whole medium term down trend from 1.3283 has completed continues to build up with weekly MACD and RSI breaking their own down trend. Nevertheless, focus remains on the mentioned cluster resistance at 1.0999/1028 (100% projection of 0.9634 to 1.0623 from 1.0010 at 1.0999, 38.2% retracement of 1.3283 to 0.9634 at 1.1028). Sustained break of this resistance zone will indicate that whole rise from 0.9634 is possibly impulsive in nature and should target next cluster resistance at 1.1596 (161.8% projection of 0.9634 to 1.0623 from 1.0010 at 1.1610). On the downside, a break below 1.0010 support is needed to confirm rise from 0.9634 has finished. Otherwise, further rally is still in favor after pullback.

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